7. Become a focused oil and gas company that
delivers value over volume through:
• Clear Priorities
• Quality Portfolio Management
• Outlining Distinctive Capabilities
Strategic Plan
8. • Relentless Focus on Safety
• Play to Our Strengths
• Stronger and More Focused
• Simpler and More Standardized
• More visibility and Transparency to Value
• Active Portfolio Management
• New Upstream projects
• Generation of 50% More Operating Cash
• Reinvestment
• Balance Sheet
Implementation/
10 Point Plan
10. • Ethical Issues
• Environmental Clean Up
• Economic Diversity
• Legal Issues
Social Responsibilities
11. • Corporate Social Responsibility
• Investing in the Employees Worldwide
Direct spending on educational initiatives in 2014 in millions
Corporate Social
Responsibility
13. • Management in the Years Ahead
• Benchmarking
• Redevelopment
• Impact
Conclusion
14. References
BP at a Glance. (n.d.). Retrieved 04 15, 2015, from BP Global: http://www.bp.com/en/global/corporate/about-bp/bp-
at-a-glance.html
Code of Conduct. (n.d.). Retrieved 04 13, 2015, from BP Global: http://www.bp.com/content/dam/bp/pdf/code-of-
conduct/bp_code_of_conduct_en.pdf
Deepwater Horizon Accident. (n.d.). Retrieved 04 13, 2015, from BP Global:
http://www.bp.com/en/global/corporate/gulf-of-mexico-restoration/deepwater-horizon-accident-and-response.html
Gulf of Mexico Restoration. (n.d.). Retrieved 04 13, 2015, from BP GLobal:
http://www.bp.com/en/global/corporate/gulf-of-mexico-restoration.html
Investigations. (n.d.). Retrieved 04 13, 2015, from BP Global: http://www.bp.com/en/global/corporate/gulf-of-mexico-
restoration/investigations-and-legal-proceedings.html
Our Strategy. (n.d.). Retrieved 04 13, 2015, from BP Global: http://www.bp.com/en/global/corporate/about-bp/our-
strategy.html
Restoring the Environment. (n.d.). Retrieved 04 13, 2015, from BP Global:
http://www.bp.com/en/global/corporate/gulf-of-mexico-restoration/restoring-the-environment.html
Supporting Development. (n.d.). Retrieved 04 13, 2015, from BP Global:
http://www.bp.com/en/global/corporate/sustainability/society/Supporting-development-in-societies-where-we-
work.html
Sustainability. (n.d.). Retrieved 04 13, 2015, from BP Global:
http://www.bp.com/en/global/corporate/sustainability/environment.html
What we do. (n.d.). Retrieved 04 13, 2015, from BP Global: http://www.bp.com/en/global/corporate/about-bp/what-
we-do.html
Editor's Notes
BP Corp. – Board of Directors Meeting
Stacey Troup
MGT-230
April 12, 2015
University of Phoenix
2
S.W.O.T. Analysis
Strengths
We at BP pride ourselves on our strengths, which are based on safety, strategic maneuvering, diversification, supply chain and benchmarking goals
Weaknesses
Rising costs for distribution, maintenance and R&D are some of our greatest weaknesses.
Opportunities
With our company reaching epic globalization levels, we have greater opportunities to explore alternative drilling areas, develop more upstream projects and open new distribution channels now more so than ever before.
Threats
Catastrophes in offshore drilling equipment failure combined with environmental clean up and legal ramifications threaten the profitable bottom line of BP Corp.
7
10 Point Plan
In response to the Deepwater Horizon accident of 2010, we established a core plan of attack to counteract the adverse effects of this tragedy in order to restore trust and value.
Relentless focus on safety: Newly adapted safety process
Play to our strengths: Exploration of new territories
Stronger and more focused: Through the divesture of a portion of our upstream businesses while retaining 90% of profits.
Simpler and more standardized: Implementation of standardization of our global systems and processes.
More visibility and transparency to value: Reporting of operating expenses relating to downstream results by fuels, petrochemicals and lubricants separately, we become more visible in terms of our earnings to the investor.
Active portfolio management: $38B divestment program announced for 2015
New Upstream Project: Onstream unit cash margins double the 2011 average.
Generate 50% More Operating Cash: Reporting of $32.8B of operating cash flow in 2014, which represents a 50% increase over reported cash flow of 2011.
Reinvestment: A Share buyback program of $10.3B was executed in 2013 helping to increase dividend payback to investors to 39%.
Strong Balance Sheet: Gearing target of 10-20% for 2014 decreasing from 20.4% in 2011 to 16.7%
Ethical Issues
Clean up following catastrophe. Environmental impact as well as the ramifications of the disaster to ecosystems and the safety of the employees working on the projects themselves.
Economic Diversity
Our commitment to seek out new locations for drilling lead to development of underdeveloped countries and their people. We often seek out to educate and employ local residents of the areas in which we drill leading to a stronger economic matrix in the area.
Legal Issues
Supply chain management for quality standards continues to be of vast importance to our safety goals and leads directly to legal issues surrounding drilling. Equipment failure from faulty parts manufacturing continues to be at the helm of our legal issues relating to quality standards and maintenance of our Mission and Vision statements.
Corporate Social Responsibility
We seek to drill in underdeveloped areas of the world in order to assist with the reestablishment of social and financial structures in those areas. BP spends approximately $36M per annum on educational services in those areas in an effort to bring the residents up to educational par and assist with career goals.
Management in the Years Ahead
By continuing our management focus on safety and the core values of the strategic plan we ensure our success. We must continue our focus on redevelopment, education, divestures, benchmarking goals and environmental safety issues to maintain our status as a global power.
Benchmarking
One of the most important aspects of our success in the future, all other goals rely on effective benchmarking goals. We must strive for new markets, supply chain management, quality standards, and financial goals to continue our success.
Redevelopment
Due to our globalization and reach across the globe, redevelopment in economically underdeveloped regions will continue to prove favorable in terms of new territories developed and assisting with the redevelopment of those areas. By investing in our future, we secure it.
Impact
Already a global leader, we must set standards for excellence as outlined in the strategic planning area. It is through these standards that we identify superior suppliers, obtain new contracts (both civil and government), and grow as a superpower. Planning is the key to our future. We must not lose sight of that.
